10/26/1999 BWS Minutes
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YELM CITY COUNCIL
BUDGET WORK SESSION
4:15 P.M., TUESDAY, OC!OBER 26,1999
Present:Kathy Wolf, V~lma Curry, Adam Rivas, Martha Parson, Glen Cunningham, John
Thompson, Shelly Badger, Ken Garmann, and Agnes Bennick. .
Discussion concerned the November 2; budget work session. As fund reviews are almost
. complete, salary discussion is still in the union negotiations stage, and the 1-695 results will be
known that night, it was suggested that t~e NO'y~mber 2, meeting be cancelled. Council consensus"
favored cancelling the November 2, budget work session.
1. 412 - Sewer - Shelly Badger provided copies of the 1998 Sewer Rate Increase Public
Hearing notice that was mailed to sewer customers. The notice explained that the 1999
rate increase is the first in a 5-year plan to increase rates to $36.00 per month. .
Badger explained that a $160,770 shortfall in sewer revenue has created a situation where a
larger than planned for sewer rate increase will be needed to .meet debt obligations and
operating costs. Budgeting for the sewer department was particularly challenging as
expansion and reuse operating costs were added during the year and estimates for the
associated expenditures were difficult to project without operating history. There was
discussion concerning the amount of increase. Council consensus was that the rate be
~et at $35.00.
Additionally, Badger requested that the Interfund Loans made to the Sewer Dept. from
UDAG be forgiven. The principal for the loan payments for 2000 would be $99,370, and
only 5 payments would remain for 2001. UDAG currently has a $344,000 balance and the
money may be used in any ,way the City s'ees fit and proper under state laws for
municipalities. There is no HOO restriction requiring use of the funds for the benefit of
low-moderate income persons. Council consensus was that the Sewer Interfund Loans
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from UDAG be forgiven.
A public hearing was planned for Tuesday, November 23, the earliest date possible
, allowing 1 O-daynotification. Council.requested that a 'flyer be sent to utility customers.
2., REVIEW ITEMS FROM PREVIOUS MEETINGS
A. Y2K ~ Emergency/Disaster Fund - discussion concerned if the money left in the fund
at the en,.d o(the year should be returned to the general fund or remain in place.
Council'consensus was that the funds should remain in the' Emergency/Disaster
Fund' ,Badger requested guidance on the police department request to purchase two
comput~rs out of the Y2K fund. She noted that all other departments' had planned and
made computer upgrades out of their regular budgets. Council consensus was that" ,
the Y2K line in the Emergency/Disaster Fund was not intended for equipment
purchases that should be planned and purchased from operating budgets.
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Shelly reported that Chi~f Dunnam had purchased a couple ~f surplus generators and
motorcycles. '
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B. Salary discussion - next meeting as union/city negotiations are in process.
3. Property Tax Rates - Agnes Bennick reported that there is a statutory requirement to have
_ a levy rate ordinanc'e to the Thurston County Assessor-by the 15th of November, requiring a
levy rate public hearing no later than the November 10th meeting. At this time we have not
received the City's assessed valuation and it is not possible to determine an actual tax rate.
Projections based on:a 12%, %% and 1 % increase were provided and council was asked if
they were comfortable with selecting a rate forthe ordinance, or if they wanted to wait'
until the work session the day before the meeting? Council consensu's favored a 60/0
increase.
Adjourn 6:20 p.m..
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. Attest:
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Agn~s'P. Bennick,. City Clerk
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